If you have a high-deductible health plan (HDHP), you may be eligible for a Health Savings Account (HSA)—a flexible, tax-free way to save for medical expenses. Besides helping to provide peace of mind,
HSAs offer many advantages.

Tax-Free Benefits

HSAs allow you to make contributions and earn interest tax free. Plus, your distributions (the assets withdrawn) are also tax free as long as they're used for qualified medical expenses.

Flexibility in Spending

You can use the money in your HSA to pay for—or reimburse—qualified medical expenses for you and your family members. Those expenses could include health insurance deductibles, co-payments, certain over-the-counter medications and out-of-pocket expenses.

Year-to-Year Savings

You've heard the phrase, "use it or lose it." Well, an HSA isn't like that at all. HSA balances carry forward year after year, allowing you to budget for health expenses and build up your savings to cover qualified medical expenses when the need arises.

Individual Ownership

An HSA is owned by you, not your employer. So, it's your responsibility to maintain. Ask us for more details.

Expanded Availability

Unlike Archer Medical Savings Accounts, HSAs are available to everyone, not just the employees of small businesses and the self-employed.

Contribution Options

Although this is an individual account and goes with you from career to career, your employer may choose to make contributions to your HSA as an added benefit to you.

The annual contribution limit is based on the type of HDHP coverage. For 2018, the limit increases to $3,450 for self-only coverage and $6,900 for family coverage. These limits are subject to annual cost-of-living adjustments (COLAs).

Individuals who are age 55 or older by the end of the taxable year and not enrolled in Medicare may make additional contributions up to $1,000 per year.

Account

Flexible Spending Account

Health Reimbursement Arrangement

Health Savings Account

What type of plan is required?

Any type of plan

Any type of plan

HDHP required: IRS-defined parameters

Who owns the account?

Employee

Employer

Employee

Who can fund the account?

Employee

Employer

Employee, Employer

Does the account accrue interest?

No

Yes (but not typical)

Yes

Do assets carry over/roll over to the next plan/next year?

Limited

Depends on how the plan is set up

Yes

Is the account portable?

No

No

Yes

Is there a catch-up provision?

No

No

Yes

Account Details1

Minimum Opening Deposit

$100

Minimum Daily Balance Required to Waive Monthly Maintenance Fee1

$2500

Monthly Maintenance Fee1

$2.50

Check/Debit Charges

No Charge

Interest Earnings

Yes

Minimum Balance to Earn Interest

$500 minimum daily balance

Calculated

Daily

Paid/Compounded

Monthly

ATM Transaction Charges2

Columbia Bank ATMs

No Charge

Non-Columbia Bank ATMs

$2.50

1 If the balance requirement to avoid the monthly maintenance fee is based on a minimum, you must maintain that minimum balance each day to avoid the disclosed maintenance fee.
2 You may be subject to international service charges and surcharges on non-Columbia Bank ATMs.
Please refer to the “Services & Fees Schedule” for additional fees that may be assessed against your account.

You must maintain a minimum daily balance of $2,500.00 to waive the $2.50 monthly maintenance fee on the Business Health Savings account.

This page is intended to provide general information on federal tax laws governing HSAs. It is not intended to provide legal advice or to be a detailed explanation of the rules or how such rules may apply to your individual circumstances or under your state tax laws.

For specific information, you are encouraged to consult your tax or legal professional. IRS Publication 969, Health Savings Accounts and Other Tax- Favored Health Plans, the instructions to IRS Form 8889 and the IRS's web site, www.irs.gov, may also provide helpful information.